What is Windshield Insurance?

Windshield Insurance Definition

A risk-management product that helps automobile owners limit their exposure to the cost of repairing or replacing a chipped and cracked windshield, window or sunroof. Also called “auto glass insurance,” windshield insurance is offered because windshield damage is common in some parts of Canada, such as Alberta, where the roads are sanded heavily rather than salted and there are often larger pieces of rocks and gravel that chip windshields.

These chips quickly develop into cracks due to rapid and intense temperature changes, necessitating potentially costly repair or replacement. Windshield insurance is a separate product from auto insurance; a benefit of this separation is that filing a claim for windshield replacement won’t drive up your auto insurance premiums. For safety reasons, it’s important that your auto glass is intact.

The Breakdown

If windshield insurance costs $186 annually plus a $50 deductible to replace your windshield, while replacing your windshield without insurance might cost $150 to $325, setting aside $325 in a savings account and hoping you don’t have to spend it might be a better choice than incurring a certain expense of $186 per year. Consumers should ask themselves how often they expect to replace their windshields and whether carrying windshield insurance is likely to pay off under that projection. And the out-of-pocket cost to repair chips will almost certainly be less than the annual insurance premiums plus the $25 chip-repair deductibles.

Rock chips and cracks are common in Alberta. Please Contact Us for more information about protecting yourself!

First Foundation Tips

Because the cost to replace or repair window glass is relatively low and the cost of windshield insurance is relatively high, consumers may find that self-insuring against this hazard is a better financial choice than purchasing windshield insurance. In the long run, they may come out ahead by paying for any repair costs and skipping insurance. This self-insurance strategy is unwise, however, for insurance products such as auto insurance that protect policyholders against large losses they cannot afford to pay out of pocket.

Consumers who experience frequent and expensive auto glass damage might benefit from windshield insurance; others might consider purchasing a "Comprehensive Cover Limited Glass" endorsement-SEF 13D for your auto insurance policy as an alternative that might make more financial sense.

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Last updated Oct 29, 2018